Fidelity and SEC meet to discuss spot Bitcoin ETF application
The United States Securities and Exchange Commission (SEC) recently met with Fidelity to seek additional clarity on its spot Bitcoin (BTC) exchange-traded fund (ETF) application.
According to a filing published on December 7, two Cboe BZX Exchange representatives, along with six personnel from the SEC and nine individuals from Fidelity, discussed the workings of the Wise Origin Bitcoin Trust in a meeting.
“The discussion concerned Cboe BZX’s proposed rule change to list and trade shares of the Wise Origin Bitcoin Trust under Cboe BZX Rule 14.11(e)(4). Fidelity also provided the attached presentation.”
The filing incorporated PowerPoint slides used during the meeting to illustrate the operational framework of the Bitcoin ETF.
“Arbitrage and hedge are more efficient with physical creations,” the filing stated while proposing the most effective strategy to the U.S. regulator:
“Self-clearing ETF market maker firms can facilitate efficient arbitrage in acting as Agency AP for non-self-clearing ETF market maker firms with Crypto Affiliates. Allowing for physical creation and redemption is critical to enhance trading efficiency and secondary market pricing for all participants.”
Fidelity submitted an application for a spot Bitcoin ETF to the SEC on June 19, shortly after BlackRock and several other asset managers filed for the product just days prior.
However, the SEC rejected Fidelity’s application for a spot Bitcoin ETF in 2022.
This comes after recent news that the SEC is meeting with spot Bitcoin ETF applicants to discuss various aspects of applications.
Cointelegraph recently reported that based on industry insider knowledge they were discussing “key technical details” related to U.S. exchanges listing shares of a spot Bitcoin ETF.
Related: Fidelity seeks green light for Ethereum ETF, following BlackRock’s filing
However, memos released by the SEC in November showed the Commission separately met with representatives of BlackRock and Grayscale.
There has been much speculation in recent times over when a spot Bitcoin ETF will be approved.
Hashdex, one of the applicants among the 13 asset managers, anticipates to see the first U.S. spot Bitcoin ETF by the second quarter of 2024.
“The exact timing of a spot Bitcoin ETF in the U.S. remains unclear, but in 2023, the narrative around this product switched from a question of ‘if’ to a matter of ‘when,’” said Hashdex’s U.S. and Europe head of product Dramane Meite.
Meanwhile, Bloomberg ETF analysts Eric Balchunas and James Seyffart remain confident that January 10 will mark the simultaneous approval of all spot Bitcoin ETFs. This aligns with the SEC’s deadline to either approve or deny ARK Invest’s application.
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Conservative Party leader Kemi Badenoch has called on Sir Keir Starmer to sack Treasury minister Tulip Siddiq over allegations she lived in properties linked to allies of her aunt, Sheikh Hasina, the deposed prime minister of Bangladesh.
It comes after the current Bangladeshi leader, Muhammad Yunus, said London properties used by Ms Siddiq should be investigated.
He told the Sunday Times the properties should be handed back to his government if they were acquired through “plain robbery”.
Tory leader Ms Badenoch said: “It’s time for Keir Starmer to sack Tulip Siddiq.
“He appointed his personal friend as anti-corruption minister and she is accused herself of corruption.
“Now the government of Bangladesh is raising serious concerns about her links to the regime of Sheikh Hasina.”
Ms Siddiq insists she has “done nothing wrong”.
Her aunt was ousted from office in August following an uprising against her 20-year leadership and fled to India.
Ms Siddiq is also named with her aunt in Bangladesh court documents about meetings with the Russian government.
Tory leader Kemi Badenoch has called on Sir Keir to sack the minister
Read more from Sky News:
Ten Reform councillors quit in protest
Liz Truss sends cease and desist letter to Starmer
As economic secretary to the Treasury, Ms Siddiq is responsible for policy on both the City and tackling corruption.
She referred herself to the prime minister’s ethics watchdog on Monday following the reports about the properties.
On the same day, the prime minister said: “Tulip Siddiq has acted entirely properly by referring herself to the independent adviser, as she’s now done, and that’s why we brought into being the new code.
“It’s to allow ministers to ask the adviser to establish the facts, and yes, I’ve got confidence in her, and that’s the process that will now be happening.”
Kenya is preparing legislation to regulate cryptocurrencies with a draft proposal open for public feedback until Jan. 24.
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